- Optimism in financial markets keeps AUD supported.
- The US Dollar Index remains flat below 91.70 on Thursday.
- The unemployment rate in Australia fell to 5.6% in March.
AUD / USD gained nearly 100 pips on Wednesday and remains firm on Thursday. The price rose to 0.7760 on Thursday, the highest level since March 19. It then fell back and is trading at 0.7740, rising for the fourth day in a row.
Strong Australian employment report supports AUD
During the Asian session, data released by the Australian Bureau of Statistics revealed that the Unemployment rate in March fell to 5.6% from 5.8% in February. More importantly, the employment change was positive at 70,700, beating the market expectation of 35,000 by a wide margin. Although the initial market reaction was relatively subdued, it gave the AUD some support.
On the other hand, after a three-day drop, the US dollar index is moving sideways below 91.70, having hit new lows in weeks previously at the 91.50 zone.
There are several economic data from the US ahead, among which the report of retail sales, industrial production and requests for unemployment benefits stands out.
The Wall Street futures are rising and pointing to a positive open with gains of around 0.50% for the main indices. This positive tone contributes to the strength of the AUD. In addition, the dollar is weakened by a decline in Treasury bond yields.
Technical levels
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